In the case of Bluerobin Inc v Kilian dated June 5, 2023, respondents Abraham Kilian and Kilian Holdings Inc. had entered into an agreement of purchase and sale (APS) with the applicant, Bluerobin Inc, to buy a commercial property located at 548 Princess Street, Georgian Bluffs. The purchase price was $1,575,000, and the respondents had provided a deposit of $100,000 to the applicant's lawyer in trust.
On April 11, 2022, the applicant notified the respondents that it was re-listing the property and would pursue remedies against them. Eventually, the applicant found another buyer and re-sold the property for $35,000 less than the price agreed upon with the respondents.
The applicant applied for a declaration that the respondents breached the APS by failing to close the transaction as agreed. It sought an order to forfeit the deposit. The applicant contended that although there were negotiations, there was never a formal agreement to extend the closing date. It argued that the law entitled it to forfeit the whole deposit without having to prove damages.
The court ultimately granted the application, stating that there was no agreement to extend the closing date, and the respondents' acceptance of the applicant's offer was not binding.